Recent #ai developments, particularly in Natural Language Processing (#nlp) like #gpt3, are widely used. Ensuring safety and trust with increasing NLP use requires robust guidelines. Global AI #regulations are evolving through initiatives like the #euaiact, #unesco recommendations, #us AI Bill of Rights, and others. The EU AI Act's comprehensive regulation sets a potential global benchmark. NLP models are subject to existing rules, such as #gdpr. This paper explores AI regulations, GDPR's application to AI, the EU AI Act's #riskbasedapproach, and NLP's role within these frameworks.
“The origins of the discussion concerning the role of #risk in #datatransfers are difficult to trace. Despite this, #schrems II, a recent decision of the European Court of Justice (#cjeu), has given the topic new traction. This paper explores the risk-based approach (#rba) hypothesis for data transfers from a different perspective: the consequences of applying the 'two-step test' stated in Article 44 of #gdpr. The main goal is to present the challenges of applying this test and the various questions it raises.”
A model is developed wherein firms offer #esg and #financialreports to investors, influencing stock prices and management incentives. Changes in investor preferences and ESG's cash flow impacts shape market responses, #misreporting, and outcomes.
"There is a well-known conflict of interest between #liabilityinsurance #insurers and policyholders with respect to the decision to settle or litigate a #claim. This short note provides a simple graphical explanation for the problem and grounds it in the way the structure of the parties’ payouts drives their attitudes towards #risk. An optional appendix links the insights to the elementary mechanics of financial options.
#esg practices enhance #riskmanagement, performance, stakeholder interest, and capital access. Strong ESG ratings reduce credit spread, benefiting firms' financials. ESG disclosure aligns with principal-agent theory, lowering debt costs. Even modest ESG improvement cuts credit spread by 0.0035%, aiding companies' interest expenses. Transparent ESG commitment yields #european market rewards, aiding corporate bonds. Study aids policymakers, credit agencies, investors, and issuers in understanding ESG's bond impact.
This study addresses #climate-induced decline in #honey production, a significant #risk for #beekeepers. A #parametricinsurance policy is discussed, using #weatherdata to trigger payouts for losses due to adverse conditions. The approach is evaluated using random forests, comparing beekeepers' losses to #insurance benefits under various weather #scenarios, alongside traditional methods. An #italian case example demonstrates pricing for different regions.
Examining the Great Depression, we use novel methods and data to show that despite 9,000 #bank closures, #risk increased instead of leaving the system. Healthier #banks acquired risk through mergers, with each acquisition raising the acquiring bank's risk by 25%. #financialcrises don't rapidly eliminate risk; merger policies affect #systemicrisk.
In March 2023, rapid #bankruns led to the failures of #siliconvalleybank, Signature Bank, and First Republic Bank. Uninsured depositors lost confidence due to higher interest rates and their investment model. Other banks are also experiencing deposit outflows. A book by #nyustern faculty and others analyzes the situation, offering a diagnosis and policy proposals for #financialresilience, emphasizing adaptable and robust #banking policies amidst changing #risks.
The introduction of #ai #chatgpt has stirred discussions about AI regulation. The controversy over classifying systems like ChatGPT as "high-risk" AI under #euaiact has sparked concerns. This paper explores how Large Language Models (#llms) such as ChatGPT are shaping AI policy debates and delves into potential lessons from the #gdpr for effective regulation.
The submission suggests strategies for regulating #ai in #australia, including examining the rate of take-up of #automated #decisionmaking systems, and regulating specific applications of underlying AI technologies. It also suggests altering the definition of AI, creating a set of guiding principles, and adopting a #risk-based approach to #regulation.